What Can We Learn About Kimlun Corporation Berhad's (KLSE:KIMLUN) CEO Compensation?

Tian Sim became the CEO of Kimlun Corporation Berhad (KLSE:KIMLUN) in 2009, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Kimlun Corporation Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Kimlun Corporation Berhad

Comparing Kimlun Corporation Berhad's CEO Compensation With the industry

At the time of writing, our data shows that Kimlun Corporation Berhad has a market capitalization of RM246m, and reported total annual CEO compensation of RM990k for the year to December 2019. We note that's a small decrease of 5.0% on last year. In particular, the salary of RM651.1k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below RM822m, reported a median total CEO compensation of RM934k. This suggests that Kimlun Corporation Berhad remunerates its CEO largely in line with the industry average. Furthermore, Tian Sim directly owns RM6.4m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. Kimlun Corporation Berhad pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Kimlun Corporation Berhad's Growth

Over the last three years, Kimlun Corporation Berhad has shrunk its earnings per share by 31% per year. It saw its revenue drop 18% over the last year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Kimlun Corporation Berhad Been A Good Investment?

With a three year total loss of 66% for the shareholders, Kimlun Corporation Berhad would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Kimlun Corporation Berhad is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Kimlun Corporation Berhad (1 is concerning!) that you should be aware of before investing here.

Switching gears from Kimlun Corporation Berhad, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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